Siyaram top bet in midcap textile space; likely to perform well in long-term: Avinnash Gorakshakar

In a chat with ET Now, Avinnash Gorakshakar, Head of Research, Miintdirect.com, shares his views on the Textiles sector. Excerpts:

ET Now: Should one really avoid names like Century Textiles, Raymond, or for that matter Bombay Dyeing. Are they more of real estate story and less of textile companies?

Avinnash Gorakshakar: Exactly, if one has to take a bet on textile stocks it would be better if one bets on Arvind or Siyaram. Siyaram from the midcap space has actually shown remarkable strong growth in earnings for successive quarters. In fact our sense is that even from the current levels, if one takes a positional call for the next say 6 to 12 months Siyaram has got a very small equity of roughly 10 crore and earnings have been extremely strong. In fact for the last two to three quarters compounded earnings growth has been more than 25 per cent. So clearly if one wants to play a bet on midcap textile space Siyaram would definitely qualify.